MORTGAGE LOANS AND SERVICING RIGHTS: BUY, SELL, OR HOLD?
As a mortgage banker, you need to determine the right price for either buying or selling a pool of loans or the servicing rights to those loans. Alternatively, if you are a banker or servicer planning to securitize, you need to understand loan pricing at origination and identify which loans will contribute and/or detract from the overall quality of the pool. Regardless of the scenario, examining the projected value of a pool of loans is essential, resting largely on whether the underlying loans will perform, outperform or underperform.
At AD&Co, we can help. Our products help value how a pool of loans will perform taking into account risk resulting from borrower behavior and macroeconomic issues. By using loan-level data, we combine our industry tested credit and prepayment models, interest-rate models, home-price models and proprietary analytics to evaluate risk and forecast values.
Supported by our experienced client service team that is available to address any concerns, our products help you:
Evaluate opportunities to buy or sell pools of loans (servicing retained or servicing released)
Project loan-level and pool-level values
Determine servicing values, including both overvalued and undervalued servicing rights in the market
Conduct hedging strategies
Run overall risk management
Tools you can use
Insights that can help you
Contact our Client Support Team for access